Switch Inc Rallies On News It Will Be Acquired By DigitalBridge in $11bn Deal
2022.05.11 17:36
By Sam Boughedda
Investing.com — Datacenter company Switch Inc’s (NYSE:SWCH) shares have rallied Wednesday on the news that it has agreed on a deal to be acquired by Digitalbridge Group Inc (NYSE:DBRG).
The deal will see DigitalBridge and an affiliate of global infrastructure investor IFM Investors purchase all outstanding Switch shares for $34.25 per share in an all-cash transaction valued at approximately $11 billion, including debt.
The purchase price represents an over 11% premium to the closing price of Switch on Tuesday. The price values Switch at around $8.38 billion.
“At DigitalBridge, we are building the world’s leading global digital infrastructure investment platform, and this transaction allows us to partner with one of the industry’s fastest growing and highest quality data center portfolios,” said Marc Ganzi, Chief Executive Officer of DigitalBridge.
Thomas Morton, President of Switch, commented: “Following a robust evaluation of market dynamics and strategic review process by the company and its Board of Directors, we strongly believe that this is the optimal path forward for Switch and our shareholders.”
The transaction is expected to close in the second half of 2022.
Switch shares hit a high of $33.40 Wednesday.
